| How To Skyrocket Your Retirement Fund | |
Investing in real estate or discounted paper is a wonderful way to increase the size of your retirement fund rapidly. The "Rule of 72" explains why. The Rule of 72 is a banker's rule that calculates the number of years it will take for a sum of money to double. You divide the number 72 by the annual percentage rate you are receiving on that sum of money. For example, if you are earning 6% interest on a CD, divide 72 by 6: The Rule of 72 tells us that if you are earning 6% interest, your money will double in 12 years. How long will it take for your money to double if you are earning a 30% return? At a 30% annual rate of return, your money doubles every 2.4 years. That is powerful. If you start out with $10,000, it grows to $20,000 in 2.4 years, to $40,000 in 4.8 years and to $80,000 in 7.2 years. In less than ten years, your initial $10,000 investment explodes to $160,000. And, if you are using your retirement fund money, all that profit is tax defered . . . Now that is something worth thinking about. Editor's Note: If you would like more information about using your retirement funds for real estate or mortgages, you may want to contact Hugh Bromma, who is one of our "Creative Specialists." Submitted By: [Return to Menu] | |